Margins are all down to the cost of the product against the price consumers are willing to pay, and there will generally always be a ceiling. It is, of course, evident that by training staff to upsell to a higher price bottle doesn’t necessarily mean the margin will be greater. Usually ‘desired products’ such as high-quality champagne have a lower gross profit than that of a Cava or Prosecco, and coaching staff to be aware of these facts will enhance the knowledge and understanding for them to drive businesses forward.
The benefits of ensuring hospitality venues have constructed their menus accordingly, taking into consideration cost, demand and desire, will encourage consumers to re-familiarise themselves with the nation’s favourite celebration drink and, in turn, increase profit margins.
Managing risk, securing regulatory compliance and raising operational efficiency is vital to the profitability of every leisure or retail-based business. Capcon Reality provides the perspective and specialist corporate services that ensure you achieve this.
Contact Lee Bowen or Nick Gay at Capcon Reality for more information about our services to the sector and how we can help you and your business protect profit and, in many cases, contribute to margin growth by eliminating waste or malpractice, increasing margins and raising service standards and sales.
Source: Daily Telegraph, Decanter Magazine, IWSR